New York, February 10, 2022 -- Moody's Investors Service ("Moody's") has assigned
an A1 issuer rating with stable outlook to Citigroup Global Markets Funding
Luxembourg S.C.A. (CGMFL). Moody's also
assigned a P(A1) program rating to be applied to notes issued by CGMFL
and guaranteed by Citigroup Global Markets Limited (CGML, A1 issuer
rating) under Citigroup Inc.'s (A3 stable) Global Medium
Term Note Program. CGMFL is a financing subsidiary of CGML.
The outlook on CGMFL is stable.
Assignments:
..Issuer: Citigroup Global Markets Funding Luxembourg
S.C.A
....Backed Issuer Rating (Local Currency),
Assigned A1, Stable
....Backed Senior Unsecured Medium-Term
Note Program (Foreign Currency), Assigned (P)A1
Outlook Actions:
..Issuer: Citigroup Global Markets Funding (Lux) S.C.A.
....Outlook, Assigned Stable
RATINGS RATIONALE
CGMFL's A1 issuer rating is at the same level as CGML's A1
issuer rating, based on CGML's irrevocable and unconditional
guarantee of all of CGMFL's obligations. CGMFL's stable
outlook is aligned with CGML's stable outlook.
Moody's said the CGML guarantee substantively fulfills the principles
underlying Moody's criteria for credit substitution including being
irrevocable and unconditional; promising full and timely payment
of obligations; and shall remain in full force and effect until all
amounts have been repaid. The payment and delivery obligations
of CGML under the guarantee rank pari passu with all of CGML's other
unsecured and unsubordinated outstanding obligations.
Governance is highly relevant for CGML and CGMFL, as it is to all
firms that participate in the financial services industry. Corporate
governance weaknesses can lead to a deterioration in a company's credit
quality, while governance strengths can benefit its credit profile.
Governance risks are largely internal rather than externally driven.
Consistent with Citigroup Inc. (A3 stable), CGML's
ratings (and correspondingly, CGMFL's ratings) incorporate
a one-notch downward adjustment to reflect the complexity of their
operations and related management challenges and the risk of strategic
errors. Corporate governance remains a key credit consideration
and requires ongoing monitoring
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Because CGMFL's obligations are guaranteed by CGML, CGMFL's
issuer rating would be upgraded should CGML's issuer rating be upgraded.
Similarly, CGMFL's issuer rating would be downgraded should
CGML's issuer rating be downgraded.
The methodologies used in these ratings were Banks Methodology published
in July 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1269625,
and Securities Industry Market Makers Methodology published in November
2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1187332.
Alternatively, please see the Rating Methodologies page on www.moodys.com
for a copy of these methodologies.
REGULATORY DISCLOSURES
For further specification of Moody's key rating assumptions and
sensitivity analysis, see the sections Methodology Assumptions and
Sensitivity to Assumptions in the disclosure form. Moody's
Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.
For ratings issued on a program, series, category/class of
debt or security this announcement provides certain regulatory disclosures
in relation to each rating of a subsequently issued bond or note of the
same series, category/class of debt, security or pursuant
to a program for which the ratings are derived exclusively from existing
ratings in accordance with Moody's rating practices. For ratings
issued on a support provider, this announcement provides certain
regulatory disclosures in relation to the credit rating action on the
support provider and in relation to each particular credit rating action
for securities that derive their credit ratings from the support provider's
credit rating. For provisional ratings, this announcement
provides certain regulatory disclosures in relation to the provisional
rating assigned, and in relation to a definitive rating that may
be assigned subsequent to the final issuance of the debt, in each
case where the transaction structure and terms have not changed prior
to the assignment of the definitive rating in a manner that would have
affected the rating. For further information please see the ratings
tab on the issuer/entity page for the respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this credit rating action,
and whose ratings may change as a result of this credit rating action,
the associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
The ratings have been disclosed to the rated entity or its designated
agent(s) and issued with no amendment resulting from that disclosure.
These ratings are solicited. Please refer to Moody's Policy
for Designating and Assigning Unsolicited Credit Ratings available on
its website www.moodys.com.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
Moody's general principles for assessing environmental, social
and governance (ESG) risks in our credit analysis can be found at http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1288235.
At least one ESG consideration was material to the credit rating action(s)
announced and described above.
The Global Scale Credit Rating on this Credit Rating Announcement was
issued by one of Moody's affiliates outside the EU and is endorsed
by Moody's Deutschland GmbH, An der Welle 5, Frankfurt
am Main 60322, Germany, in accordance with Art.4 paragraph
3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies.
Further information on the EU endorsement status and on the Moody's
office that issued the credit rating is available on www.moodys.com.
The Global Scale Credit Rating on this Credit Rating Announcement was
issued by one of Moody's affiliates outside the UK and is endorsed
by Moody's Investors Service Limited, One Canada Square,
Canary Wharf, London E14 5FA under the law applicable to credit
rating agencies in the UK. Further information on the UK endorsement
status and on the Moody's office that issued the credit rating is
available on www.moodys.com.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Peter E. Nerby
Senior Vice President
Financial Institutions Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653
Donald Robertson
Associate Managing Director
Financial Institutions Group
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653
Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653